Car insurance policies written by the national carrier Allstate could see substantial increases in early 2024, with the average annual coverage expected to increase about $420.
The New York Department of Insurance recently approved a 14.6% increase in auto premiums for nearly 500K drivers in the state, with higher renewal rates going into effect on January 29, 2024. This approved rate hike is expected to help Allstate improve its profitability in the state to cover its current and expected losses.
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New York drivers covered by Allstate pay approximately $2,875 annually for their auto coverage, with those rates expected to grow to about $3,295 after the rate rollout is completed.
Allstate, the number-four carrier in the state, currently holds approximately $1.4B in written premium in New York based on best estimates. With the increased rates, that written premium will grow by about $239M, impacting 485K current policyholders.
How To Avoid Growing Insurance Costs
Drivers impacted by this change, or any of the other rate changes upcoming in New York that will grow auto insurance bills for drivers in the state, can do a few things to save on their coverage costs:
Shop Around
Different insurance companies offer varying rates based on individual factor, so comparing quotes from several providers is crucial to finding the best deal. Online comparison tools, like the one offered by Auto Quote Tracker, can help you quote with several carriers quickly and find the insurer that best meets your needs.
Drive Safely
In New York, a driving accident stays on your insurance record for three years from the end of the year in which the accident occurred. While you can’t go back in time and avoid an accident, driving safely from here on out can help you keep your record clean in the future to save on insurance rates.
Search Out Discounts
Many insurers offer discounts for bundling policies together (like tying your home or renters insurance to your auto coverage) or affiliations, including:
- Alumni Associations
- Professional Organizations like the American Bar Association or American Medical Association
- Military and Government Employees
- Large Employers
- Union Members
- AAA Members
- Good Student Discounts
- Defensive Driving Courses
- Senior Discounts
Review Your Coverages
Take a look at your current policy and see if your current coverages make sense. You can learn more about some of the coverages included in most policies here, or reach out to your carrier to find out if there are other ways to cut down on the rate increases by increasing your deductible or changing some of your policy limits.
About Allstate
Allstate is one of the largest insurance companies in the United States. It offers a variety of insurance products, including auto insurance, homeowners insurance, and life insurance. Allstate is known for its competitive rates and its commitment to customer service.
Allstate’s auto insurance policies come with a variety of features, including liability coverage, collision coverage, and comprehensive coverage. Liability coverage pays for damage to the other driver’s car and property if you are at fault in an accident. Collision coverage pays for damage to your own car, regardless of who is at fault. Comprehensive coverage pays for damage to your car from events such as theft, vandalism, and fire.
Allstate also offers a variety of discounts on its auto insurance policies, such as discounts for good drivers, multiple cars, and bundling your auto insurance with your homeowners insurance.
